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July 27, 2005
ASK THE MAM -- MARKETING & SALES COMPENSATION
DEAR MAM: How do you determine compensation for a sales and marketing staff? Sincerely yours, TJ, Reading, PA
DEAR TJ: I’ve recently discussed appropriate compensation at a number of firms in the Northeast. I assume your question is in regard to sales and marketing staff at a law firm. For starters, I will divide the answer into “sales” and “marketing”.
In regard to the traditional marketing team, a major factor is geography. For example, without disclosing any confidential client information, the same marketing manager position salary in Philadelphia is significantly higher than the same type of firm in Pittsburgh. I know some relatively inexperienced marketing folks with midlevel jobs that pay close to $100k. In the same market, the exact same CMO job at similarly-situated firms can range from $150-400k, depending on the makeup of the firm and its seriousness and approach to the department. I can tell you that when a headhunter calls me about a CMO gig and says the salary is under 250, I hang up the phone. In other markets, that same 250 would be at the top of the scale.
A consideration for firms in outlying areas from a metro center is being able to draw an experienced “big city” marketer out of the “big city.” Very few are going to take pay cuts for a better QOL, so some firms find themselves increasing offers to draw the expertise. Some firms like the “diamond in the rough” approach, paying a youthful marketing director in the $35-50k range, hoping they develop. The downside is that if they are any good, you’ve proven to be an internship. They will be out the door with two years under his/her belt.
Another factor is the size of the department and the budget to get things done. This is a key factor for prospective employees. In the end, your best bet is someone who really wants to live in your town rather than someone looking for a job, any job. Or simply drawn by salary.
In regard to “sales” staff, as more and more law firms hire people for the sales role, remember that in almost every state, you may not hire someone using a traditional sales compensation model of salary and anything that looks remotely like commission (or in the words of our business, “fee-sharing”). You must be extremely careful how the position is promoted and compensated. The role most likely will morph out of a marketing position, with a greater focus on selling to a target, an industry, or increasing revenue for a partner, practice group or office. I wrap up my answer by reminding you that really good sales people make solid six-figure incomes, with the pressure of the quota. If you are going to get someone with a strong track record, you will need to pay a good six-figure income. If they come real cheap, you will get what you pay for. Thanks for writing. Sincerely yours, THE MARKETING ATTORNEY
Posted by Micah at 11:20 AM
ASK THE MAM -- WEB SITE VIDEOS
DEAR MAM: Are their legal restrictions as what lawyers can claim in an Internet video commercial? I’ve launched a site at http://www.AttorneyVideos.com but would like to know if there are legal quagmires I should be considering as the producer. Thank you, GR, Tampa, FL
DEAR GR: I hate to start my answer with a lawyer-like response, but just a reminder that this is not legal advice, we are not establishing an attorney-client relationship, and you should consult an attorney. Having now disclaimed myself, I have to say that you ask a very interesting and intriguing question. Not to mention an interesting and intriguing entrepreneurial venture in the world of attorney advertising.
To start, I hate to inform you that the rules (and interpretations) will DEFINITELY vary from state to state. Secondly, those states may interpret these videos as pertaining to its web site rules, television advertising rules, and most certainly the general advertising rules. You will probably inform your customers that they should consult with the relevant state bars. Many will likely make an ethics inquiry with the disciplinary board.
Where interpretation gets tricky are in areas like client testimonials (prohibited in about a dozen states), or reenactments and dramatizations (prohibited in many states for TV advertising). The argument will be whether or not you need to comply with TV rules or just web and ad rules. Either way, any videos that might suggest a propensity toward certain results will likely be disallowed. And, of course, I always remind firms in reviewing their marketing “ethics” compliance that just because it is true does not mean you can say it.
In the state where you hang your hat—Florida—they have a pretty tough set of standards. If you review those rules and comply with them, you will probably be good to go in most U.S. states. While my answer might sound scary and restrictive, the reality is that firms are getting away with more and more, with little significant threat from the state overseers.
I do find your endeavor creative. Law firms are always looking for content that stands out on its web site. Many plaintiffs’ firms that I’ve come across would likely find this product intriguing. Thanks for writing. Sincerely yours, THE MARKETING ATTORNEY
Posted by Micah at 11:10 AM
July 18, 2005
ASK THE MAM -- Martindale Listings
Dear MAM: I was wondering where you stand on Martindale. Is it still a necessary expense? And do people care about ratings and the other things they are selling? Sincerely, J.E., Clark, NJ
Dear J.E.: Repeatedly, in my work with firms and meetings with In-House counsel, Martindale continues to be an important and necessary component for any firm's marketing effort. The real question is to what extent.
Not only do decision-makers still count on MH as "the" lawyer directory, but many more than you and I would like to think still use the damn books! Why? Habit, age and comfort.
The value of the ratings are much more questionable. Those that rate high are generally those that took the time to make sure they rated high. You have to be pretty lame to try and get yourself a good rating and fail.
In regard to other MH elements. I see very little added-value in many of the added-value items. I prefer to trim the listings (you only need to be found, and subsequently redirected to your full bio on your own web site). I have never met a GC that read the articles or used the other "tools" to any great extent. It is still the ONLY real directory that anyone uses in the industry with any consistency, however.
I hope that answers your question. Yes, you still need to buy the listing. No, you probably do not need to worry about many of the other client service components. Of course, whether your audience is a GC or Johnny Consumer will play a role in how and where you are listed.
Thanks, THE MARKETING ATTORNEY
Posted by Micah at 12:29 PM
Fore! Thompson & Knight Sponsors PGA Golfer
In the July 2005 The American Lawyer, read Joshua Lipton's piece on Thompson & Knight's sponsorship of a pro golfer on the PGA Tour. Of course, read my comments praising the strategy!
It is exciting to see a few major U.S. law firms truly step out of the box and get a little more cutting-edge on marketing initiatives.
Posted by Micah at 12:23 PM